Strike Price

Benzinga  Nov 7  Comment 
As options have become more popular trading instruments for retail investors, new stock trading strategies revolving around option expiration dates have taken hold in the market. While many retail traders buy and sell options, option writers...
OilVoice  Dec 5  Comment 
Orkney Islands Council is calling for the UK Government to reconsider its approach to renewable energy subsidies following publication of 39strike prices39 which fall short of offering special r  Aug 26  Comment 
A calendar spread is simply buying a far-month option and then selling a near-month option at the same strike price. Part of the rationale is that the time erosion of the near month is usually greater than the time erosion of the long month. The...
The Economic Times  Mar 12  Comment 
The National Stock Exchange to set strikes based on volatility instead of stock denomination; low-volatility counters to see more action.
  Nov 20  Comment 
There are many aspects to trading options and it can be extremely confusing for someone starting out. Just understanding the option terminology is difficult. Remember, a put option is the right to sell the stock at the strike price, and a call...
Mondo Visione  Sep 7  Comment 
The International Securities Exchange (ISE) today announced that it has received SEC approval to introduce $0.50 strike price intervals in weekly options. The exchange began listing weekly options in the more granular $0.50 strikes yesterday,...
Business Times - Singapore  Nov 23  Comment 
EU Yan Sang International has had to lower the warrant strike price on a proposed $25 million debt- and-warrant issue, the company said yesterday.
Mondo Visione  Jan 28  Comment 
TSE will partially revise the trading rules in the first half of fiscal year 2011 to expand the number of strike prices for options on JGB futures in order to respond to diverse trading needs. These revisions will include changing the strike price...
The Economic Times  Jan 10  Comment 
The retail price of onion, which is ruling at Rs 55-60/kg in metros, is expected to shoot up further in next few days in the wake of a short supply due to the strike.


The strike price is the price at which a derivatives contract can be exercised -- the strike price is independent of the spot price and is agreed upon by the parties entering the contract. For example: A holder of a call option for Exxon-Mobil with a strike price of $82 allows the holder to buy Exxon-Mobil shares at $82, irrespective of what the market price may be.

Strike price is one of the key determinants of the price of the derivative. For call options, those with higher strike prices options are normally priced lower than those with lower strike price, while for put options it is the opposite.

The strike price determines whether the option is in the money or out of the money.

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